BOJ's Kuroda: Yen rise, stock price falls not caused by negative rates

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 14, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    BOJ Governor Kuroda, speaking in NY, said he doesn't think yen rise, stock price falls were caused by BOJ's adoption of negative interest rates.


    Won't hesitate to ease monetary conditions further if needed, utilising 3 options individually or collectively

    Can clearly say BOJ monetary policy is not targeting exchange rates

    Says BOJ will continue QQE with negative rate for as long as needed to hit price target

    BOJ will examine risks to economy, prices and won't hesitate taking
    additional easing steps if needed to hit price goal

    BOJ will achieve price target 'for sure' by making full use of existing framework

    3-tier system of negative rate framework means direct negative impact on financial institutions' profits is minimised

    What matters for economic activity is not nominal interest rate but real interest rate

    Both monetary policy and growth strategy are necessary to beat deflation

    Japan's economy has continued moderate recovery

    Underlying trend inflation has been steadily improving

    Compared to time before adoption of QQE, inflation expectations have increased on the whole
    For more information, read our latest forex news.

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